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What are the fresh challenges in customer expectation in large, medium and small buyer segments?
We are seeing rapid growth in India?s construction and infrastructure sectors. Increasing number of projects is driving up demand for heavy machinery. Typically, these are ?schedule-based contracts? where any delay in delivery can multiply cost. Contractors are choosing more up-to-date and modern equipment to meet efficiency demands. Equipment buyers, whether small or large businesses, are making a bee line for quality and cost-effective equipment. As a global leader in heavy equipment management and disposition, Ritchie Bros. aims to meet the challenges of growing demand for quality equipment through multiple selling platforms.

How do you respond to the above challenges?
More customers are looking towards the used equipment market to fulfill their project needs. Ritchie Bros. offers a range of used as well as unused equipment for a fair market value. Customers in India show a preference for equipment in the 3-5-year age group. Such equipment form a big chunk of our auction inventory. But besides offering large numbers of items, we also strive to make the buying process as easy as possible. We list items online with many details and photos, allow people to view items in person and conduct an efficient, straight-forward auction with in-person and live online bidding. We can even help successful bidders with refurbishing and logistics to its final destination. The online bidding option enables businesses in India to bid from the comfort of home or office. Using modern methods, we make the buying process hassle-free, cost-effective and user-friendly.

What percentage of customers consult you as a manufacturer, supplier or vendor, before taking procurement decisions? Could you elaborate on such customer profiles?
Our representatives are consulted by all sorts of businesses when buying and funding decisions need to be made. But, also when customers need advice on how much resale value their industrial assets hold on the market. Within Ritchie Bros. there?s a lot of expertise and data that we can use to make estimations. Besides individual consultation, we also make selling prices at our auction publicly available on rbauction.com, going back two years. With a free account, anyone can use the data to plan project funding, look up values and more. Some of our top Indian buyers are currently interested in quality mobile cranes and manlifts that are in short supply in the local market.

What is your take on the emerging trend of buying total solutions at agreed cost, instead of only used equipment, in India?
So many people, so many different needs. In India, many equipment buyers still prefer to source quality equipment from the used market and industrial auctions are getting more accepted as way to buy and sell. The buyer?s incentives are comprehensible: there?s a machine for every budget and items can almost immediately be put to work without losing valuable time. Items sold at Ritchie Bros. auctions follow an efficient and reliable process from a seller?s surplus to a buyer?s project, including inspections, listings, a world-class auction and post-auction services such as refurbishing and logistics to any destination in the world. In some situations, total solutions packages by manufacturers and distributors are attractive, in other situations people opt for the used market and auctions. What?s most important is that whoever supplies the product is a reputable and reliable company. Ritchie Bros. has been around for nearly six decades and is well-known for its transparent business model and therefore a preferred partner for many prospective buyers.

Are Indian customers willing to pay for superior technology and performance enhancing product features? If yes, to what extent and in which aspects?
Yes, in some cases. Short timelines are prompting customers to look towards superior technology. The price paid for higher quality pays off through performance and efficiency. Customers from India regularly buy from our auctions in the US even if it means higher transportation cost. We see some Indian customers make the calculation and weigh it in cleverly to get the best of both worlds - superior equipment performance with all the benefits of an auction.

What are the common but significant areas most customers focus on while selecting used equipment?
When it comes to used equipment, buyers often show a strong preference for brands which have an OEM support in their region. For example, Caterpillar and Komatsu are the two preferred brands in earthmoving machinery while Grove and Demag brands are preferred for cranes. These brands have established support networks in India which makes maintenance, repair and replacement simple. Apart from this age/condition of equipment, safety, emission are usually secondary areas of focus.

How do you look at the current industry scenario?
The current Indian Government has initiated a series of plans since its inception in 2014 and a new lease of life to several existing projects. Road construction has already climbed up from under 13 km per day and is targeted to reach 30 km per day by end of 2017. These are positive signs for the equipment industry. Ritchie Bros is eager to help people in India sell and buy the equipment they need through the efficient and powerful channels we offer.